Company Adopts Harvesting Technology’s CoPromax™ Protein System Magic Valley Facility to Resume Production
Sacramento, CA (GLOBE NEWSWIRE) - Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer of specialty alcohols and essential ingredients, will install Harvesting Technology, LLC’s patented CoPromax™ protein system at Alto Ingredients’ Magic Valley, Idaho facility.
“We are upgrading our Idaho facility with the installation of the CoPromax protein system as an integral part of our strategy to expand and diversify our essential ingredient product offerings. This system will produce new, concentrated protein feed and food ingredients,” said CEO Mike Kandris. “Upon completion, the CoPromax system will produce over 33,000 tons annually of feed with a protein content greater than 50%. It will also provide the added benefit of increasing corn oil yields by 50%, or almost 9 million pounds annually. We conservatively expect the combination will result in an annual increase of $7.8 million in gross profit and approximately $9.0 million of EBITDA. This represents approximately 15 cents per gallon and a payback of less than three years. We expect the growing demand for protein in the cattle, poultry, pork, and aquaculture industries to provide market support for our enhanced, high value protein product.”
“Harvesting Technology is excited to be working with Alto Ingredients on these protein and oil recovery projects,” said Jonathan Scarfpin, CEO of Harvesting Technology, LLC. “This protein and oil recovery system is the first step in a series of new technologies Harvesting Technology is developing to assist facilities with adding profitability as well as increasing efficiency.”
Mr. Kandris concluded, “We plan to resume operations at our Magic Valley facility, with an annual production capacity of 60 million gallons, and to commission the new system in the first half of 2022. With the successful completion of this installation, we expect to roll out the CoPromax systems, with similar economics at our other three dry mills totaling 190 million gallons of annual capacity as we build on our abilities to produce low carbon alcohols and essential ingredients into 2023 and beyond.”
About Alto Ingredients, Inc.
Alto Ingredients, Inc. (ALTO), formerly known as Pacific Ethanol, Inc., is a leading producer of specialty alcohols and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. The company’s customers include major food and beverage companies and consumer products companies. For more information please visit www.altoingredients.com.
About Harvesting Technology, LLC
Harvesting Technology, LLC, is a South Dakota company developing innovative technologies to create sustainability in energy and agriculture. These innovative solutions manufacture renewable energy options, create high value feed products and increase facility efficiencies. Harvesting Technology, LLC, is committed to help solve the world’s food and energy needs.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ expected timing, cost and benefits of installing and operating the CoPromax protein system; Alto Ingredients’ expected feed production, yields and financial results of operating the CoPromax protein system; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and its production facility enhancement initiatives. These factors include, among others, Alto Ingredients’ ability to timely and effectively restart its Magic Valley, Idaho production facility and complete the installation of, and operate, the CoPromax protein system; adverse economic and market conditions, including for specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; and the effects – both positive and negative – of the coronavirus pandemic and its resurgence or abatement. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the specialty alcohol production and marketing industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 10, 2021.
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